Bitcoin-backed preferred shares have quietly grown into a roughly $13 billion market in under two years, and a June 2026 research report from BitcoinTreasuries.net argues the expansion has only just begun. $BTC

The structure solves a real problem for treasury companies. Issuing preferred shares doesn't raise the common share count, so existing owners avoid dilution, and the capital counts as equity rather than debt, meaning no maturity date and no forced repayment. Holders get a dividend that ranks ahead of common stock.

The yields are the hook. The five main bitcoin-backed preferred securities in the U.S. carry effective yields between 10.8% and 15.2%, against the 3% to 4% offered on high-yield savings accounts. Strategy's STRF, STRC, STRK and STRD together hold a market value near $12.5 billion, while Strive's SATA sits around $330 million.

The report's central claim is that demand outstrips supply. Fixed-income institutions hold $10.9 trillion in U.S. treasuries, and a shift of just 10 to 20 basis points would generate $10.9 billion to $21.8 billion in demand. Supply, though, is capped by collateral: only the 1.26 million bitcoins held in corporate treasuries, worth about $83 billion, qualify, and Strategy alone controls some 845,000 of them.

Coverage is the safety argument. These instruments maintain coverage ratios of 3.8 to 4.5 times, meaning issuers hold $3.80 to $4.50 in bitcoin for every $1 of preferred equity. But the risks are structural rather than hidden: three of the four Strategy preferreds trade at discounts to their $100 par value, and dividends depend on a company's ability to keep raising capital against a rising bitcoin price. Both Strategy and Strive have disclosed cash reserves sufficient to cover at least twelve months of payments.

If you're an income investor eyeing these yields, remember the payout is only as strong as the collateral behind it — and bitcoin's price swings cut both ways. Strategy CEO Phong Le told investors in February that the firm's balance sheet holds unless bitcoin falls to $8,000 and stays there for five or six years.

High yield here is really a bet on collateral, not a promise of safety.

Would you buy a 10%+ yield backed by bitcoin? 👇

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